Sheridan, Wilson and Palmer are partners. They share profits and losses in the ratio of 3:2:1. In the first year of trading, ending 31 December 2024, the partnership earned a net profit of £26,000. They have agreed on the following:

Interest should be allowed on fixed capital balances at 10% per annum.

Wilson should receive a partnership salary of £7,000 per annum.

Capital account balances are as follows:

Sheridan £10,000 Wilson £8,000 Palmer £5,500 You are required to draw up the appropriation account of the partnership for the year ended 31 December 2024.